Open thread Dec. 15, 2015 Dan Crawford | December 15, 2015 7:22 pm Tags: open thread Comments (4) | Digg Facebook Twitter |
A new (updated) report from CBO on SS was released today. Some interesting conclusions, including:
=The year of combined TF exhaustion is 2029 Vs 2034 from SSA.
-CBO concludes that the Immediate and Permanent tax increase to stabilize SS is up to 4.4% (vs 2.7% from SSA).
These are very big discrepancies. CBO comments on the disagreement in outlooks:
The Social Security trustees estimated in 2015 that the
program’s 75-year actuarial shortfall was 2.7 percent of
taxable payroll, 1.7 percentage points less than CBO
estimates. The larger shortfall projected by CBO stems
mostly from three areas of difference between the Social
Security trustees’ and CBO’s projections: CBO antici-
pates that life expectancy will increase somewhat more
rapidly, the incidence of disability will be a little higher,
and interest rates will be 0.6 percentage points lower in
the long run.
Some 35 alternatives to address the shortfalls at SS are evaluated. No single solution fills the bucket. Not surprisingly, eliminating the cap and changing the formula are the most effective alternatives.
Thanks Krasting. Didn’t actually see this before putting up my new post. But credit goes to the first poster. So kudos!
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